Your Action Plan: Responding to a Medical Debt Lawsuit

Find your response deadline immediately. Look at the court papers you were served with for a date by which you must respond. If you cannot find it, call the court clerk's office — the phone number is on the paperwork or you can search for your county court online. Courts typically require a response within 20–30 days, but this varies by state. Missing this deadline can result in an automatic default judgment against you.

Contact a legal aid office as soon as possible. Free legal help is available through the Legal Services Corporation (LSC). Visit lawhelp.org to find legal aid near you. You can also call your local bar association for referral to pro bono attorneys who handle medical debt cases. Even a brief consultation can help you understand your options and avoid costly mistakes.

File a written response (called an "Answer") with the court before your deadline. Filing any response prevents a default judgment. If you cannot get legal help in time, you can file a basic Answer that states you deny the allegations and request that the plaintiff prove its case. Many courts have self-help centers with form answers you can use. Do not admit you owe the debt — instead, say you dispute the amount or require the plaintiff to provide proof. If you believe the debt may be past the statute of limitations or that you were never properly served, mention these as defenses in your Answer. Affirmative defenses not raised in your initial response may be difficult to raise later. A legal aid attorney can help you identify defenses you may not be aware of.

Check whether the hospital is a nonprofit (501(c)(3)). If it is, the hospital was required under ACA Section 501(r) to offer you financial assistance screening before pursuing extraordinary collection actions like lawsuits. If the hospital never offered or told you about financial assistance, this may be a defense in your case. You can still apply for financial assistance now — Dollar For (dollarfor.org) can help you navigate this process for free.

Check the statute of limitations. Medical debt has a statute of limitations that varies by state (typically 3–6 years). If the debt is older than your state's limit, this can be a complete defense to the lawsuit. A legal aid attorney can help you determine whether this defense applies.

Understand what is at stake if a default judgment is entered. A default judgment can enable wage garnishment (up to 25% of disposable earnings under federal law), bank account levies, and property liens. However, certain income and assets are generally protected — including Social Security, SSI, VA benefits, and retirement accounts. Understanding your protections can inform your negotiation strategy.

Do not make payments or sign agreements without legal advice. Making a payment can be interpreted as acknowledging the debt and may affect your legal position. If someone from the hospital or a collection agency contacts you, it is appropriate to say: "I have been served with a lawsuit and I am seeking legal counsel. Please direct further communications to my attorney."

If a default judgment has already been entered against you, consult a legal aid attorney about whether it can be vacated. In many jurisdictions, default judgments can be set aside if you act promptly and can show good cause — such as not being properly served or not understanding the court papers.